South African Fashion retailer, The Foschini Group (TFG), is reviewing its Kenyan business with the possibility of leaving the market in 2020. The jewelry and clothes store cites high VAT charges, heightened costs of doing business, and unfavorable laws as some of the reasons for the possible exit.
The Foschini Group (TFG) first came into Kenya in 2016, through its Sterns outlet at the Junction mall. The shop mainly sells classic jewelry and it targets people in the lower-middle, middle and upper income class.
In a statement, TFG CEO Anthony Thunstrom said they are thinking of concentrating on their home market back in South Africa, because it makes greater profits and strides there, with retail revenues rising by 19.6% by the end of March 2019.
The group will, however, review economic growth, legislature and lease negotiation before they decide on whether or not they will exit the market.
Foschini Group, which has twenty-two different retail brands under its label, deals in merchandise such as clothing, jewellery and home ware, which target the middle and upper middle income markets. It has six outlets in Kenya, with some of the stores situated at The Village Market.